By Benadeta Mwaura - Reporter
Kenya, 23 April 2026 - The National Treasury has opened the budget-making process to public participation, inviting Kenyans to submit views and proposals ahead of the 2026/2027 fiscal year, in what signals a possible review of Pay As You Earn (PAYE) tax rates.
The move comes as part of the legally required budget cycle, where citizens, businesses, and stakeholders are given an opportunity to influence fiscal policy before the Finance Bill is finalised.
According to Treasury officials, the process will include oral submissions and stakeholder engagements aimed at shaping tax and expenditure priorities.
At the centre of the discussions is the potential review of PAYE, a tax that directly affects salaried workers and has been a major point of concern amid rising living costs.
Treasury Cabinet Secretary John Mbadi has previously indicated that the government is under pressure to rebalance the tax burden, noting that salaried Kenyans currently shoulder a disproportionately high share of taxation compared to other sectors.
However, expectations of immediate relief remain uncertain. Earlier proposals to reduce PAYE for workers earning below KSh 50,000 appear to have been delayed, despite initial projections that such changes could increase take-home pay for affected employees.
Treasury insiders have also signalled that while tax adjustments are under consideration, the upcoming Finance Bill is unlikely to introduce entirely new taxes or significantly increase existing ones, reflecting the government’s attempt to balance revenue needs with public pressure over the cost of living.
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The invitation for public input comes at a critical time, with Kenya grappling with economic pressures, including inflation, high fuel costs, and growing fiscal constraints.
By opening the process to citizens, the Treasury is seeking to build consensus around policy choices that will shape the country’s economic direction in the coming year.
The outcome of these consultations is expected to feed directly into the Finance Bill 2026, where any proposed PAYE adjustments, along with broader tax policy changes, will be formally tabled before Parliament for debate and approval.
For now, the message from Treasury is clear: Kenyans have a window to influence the next budget, but whether that translates into tangible relief on payslips will depend on the final policy decisions in the months ahead.